Insight & Analysis

Press release: Compulsory liquidations double in 12 months

Published: May 2023

16th May 2023 – A leading restructuring advisor is urging business owners to take advantage of going concern solutions while they still can, after compulsory liquidations doubled in 12 months to April 2023.

Colin Haig, Head of Restructuring with UK top ten accountancy firm Azets, believes the high level of liquidations should have alarm bells ringing despite the total number of company insolvencies dipping last month.The warning comes as latest monthly statistics for April 2023 reveal there were 1,685 company insolvencies, 15% lower than in the same month in the previous year (1,988 in April 2022). However, there were 183 compulsory liquidations in April 2023, nearly twice the number in April 2022.

Colin Haig said: “The long-term trend in business failures will continue to tick upwards despite the total number of insolvencies dipping last month. More concerning is the number of compulsory liquidations, which continues at double the rate of last year and is also likely to keep rising.

“Liquidation is an end-of-life process. It’s still possible to achieve going concern solutions for quite distressed business – but that won’t last.

“Too many business owners are failing to take advantage of more constructive options. Air cover via a moratorium or restructuring plan remain viable options. My advice to businesses is to face up to problems before an insolvent liquidation becomes the only option, and while capital is still available.

“An uptick in administrations is a much better sign of the UK’s economic resilience than an uptick in compulsory liquidations. Only the latter results in a total demise and loss of all jobs.”

All our content is free, just register below

As we move to a new and improved digital platform all users need to create a new account. This is very simple and should only take a moment.

Already have an account? Sign In

Already a member? Sign In

This website uses cookies and asks for your personal data to enhance your browsing experience. We are committed to protecting your privacy and ensuring your data is handled in compliance with the General Data Protection Regulation (GDPR).